Guide to Building, Repairing, and Maintaining Credit

9 Reasons You Should Check Your Credit Report

With good credit, you can obtain the credit you deserve, at the interest rates that you rightfully qualify for. Ever wonder how mortgage companies choose the interest rate that you “qualify” for? Or have you wondered how credit card companies decide who gets credit and what the limit of the card should be?

The answer is your credit. Your creditors contact one or more of the three credit bureaus and make their decision based on information they get from the credit bureaus about you. You need to see what your creditors see. You need to know what they know. Most importantly, you need to dispute any inaccuracies or discrepancies.

Knowledge is power and now you can have it, too. Here are the nine reasons (in no particular order) you need check your credit report.

Dispute Inaccuracies

Do you realize that some credit reports may contain discrepancies? Most consumers are blissfully unaware that employers, bankers and other creditors are basing their decisions on inaccurate information.

You Have Never Seen It

Like most people, you probably have never seen a copy of your credit report. Your current and future employers have seen it, your creditors have seen it, your bankers have seen it, now it is your turn.

Applying for a Mortgage

If you have ever been through the mortgage application process, you know the stress involved. Let your mortgage company know that you have checked your credit report and what your credit rating is. Armed with this knowledge, you can really be prepared and the process will go much smoother.

Applying for Credit

Whether you are considering applying for a bank loan, car loan, credit card, payment plan for home furnishings or other creature comforts, it is wise to check your credit report first. Your credit application approval process will include a review of the contents of your credit report.

Financial Planning

Every financial advisor will recommend you obtain a copy of your credit report at least once a year. They know and understand just how important the protection of you credit information is.

Renting an Apartment or House

If you are going to rent an apartment or house, your landlord will run a credit report on you to determine your suitability. Imagine how prepared you will be if you walk into the office with your current (and accurate) report in hand.

Fraud Prevention

Is someone committing fraud by using your social security number? In recent years, identity theft and identity fraud have gone up dramatically. In this form of credit fraud, the thief steals your good credit by using your name to open accounts, run up large debts, and leave you to deal with the collection agencies when they come calling.

See Who Accessed Your Credit Report

Do you know who has access to your credit information? Your credit report contains a list of all inquiries. By reviewing your report you can quickly verify just who is looking at your information.

Your Credit Is Less Than Perfect

If your credit score is not the best you’d want it to be, checking your credit report now will help you identify lingering credit issues so you can deal with them effectively and improve your credit rating. Whatever your situation, you need to your credit report regularly to ensure that you will go into any credit-related discussions with anybody knowing exactly what lenders know about your credit standing.